Helio continues to bleed money, now $560 million in the red

by Darren Murph, posted Feb 29th 2008 at 4:04PM

We'll be honest with you -- it's a bit disheartening to watch the (seemingly) inevitable happen to Helio. After all, it's managed to soldier on despite hordes of other MVNOs hanging it up here in the US of A. Nevertheless, data gleaned from EarthLink's most recent annual report shed some light on its deteriorating situation. Reportedly, Helio's net loss "widened by 41.3-percent to $326.6 million in 2007 compared to $191.8 million in 2006," yet revenues managed to grow 267-percent to $171 million from $46.6 million the year prior and subscriber growth rose 28-percent over last quarter to 180,000. Add those figures to the $42 or so million it lost in 2005, and we're up to a grand total just south of 560 million American dollars. Tough times, indeed.

[Via Silicon Alley Insider]

Filed under: Helio, MVNOs, Misc

Tags: EarthLink, financials, helio, losses, mvno

Reader Comments (Page 1 of 1)

Neutral

Chris B. @ Feb 29th 2008 6:05PM

I really wanted to get on board with Helio, almost popped for a contract a couple of weeks ago before all of the unlimited talk started about two weeks ago. I went so far as to locate the nearest reseller and went in - what a crap hole! Picture a cell phone reseller version of the guy that sells comic books on The Simpsons, in a shoddy-looking office space that resells every service available in Portland Oregon. That, and all of the talk about Helio's fiscal situation and not-so-hot CS - I didn't pull the trigger. I signed up a few days ago for VZ's unlimited plan with smart phone - sure, it's more expensive per month, but I'm pretty sure that VZ is going to be around in 6 months...

I hope they pull it out, competition is good - I'll check them out in 2 years when my contract's up!

Neutral

ryaninc @ Feb 29th 2008 9:42PM

Aww, this sucks big time. I was seriously considering switching to Helio when my contract expires in a few months. You just can't beat the coolness of their offerings for the price. I hope they stick around for a while.

Neutral

MinceyFresh @ Feb 29th 2008 10:18PM

Hooooooly crap.
I bit the bullet when I was with AT&T and paid the ETF just to jump ship to Helio and get the Ocean as soon as it hit the market.

I really hope Helio's marketing dept starts to get their act together SOON (as I STILL have people asking me what provider I use my Ocean on)... If things keep going in the direction it is, I'm wondering how difficult it would be to port my number back to the Deathstar.

I hear it's a pain in the rear to do, but I've actually had pretty good experiences with their CS folks whenever I do have a problem, so hopefully it won't be any trouble to pull off if worse comes to worst...

Neutral

MinceyFresh @ Feb 29th 2008 10:21PM

Actually...
Maybe KDDI Mobile & Helio should merge and freeze hell over! Now there's an idea! :D

(as long as they hype it properly and start calling their products "phones")

Neutral

supes @ Mar 1st 2008 3:29AM

i've been saying this forever, mostly to random people on the street, but helio has no business offering two-year contracts. literally.

okay, we get it. helio doesn't want to be called a phone company but then why are they acting like one? two-year contracts. not much innovation. their latest phones are boring. their price plans are similar to the larger carriers. their customer service sucks beyond belief.

it seems like all they can do now is turn up the marketing B.S. to full blast. or they could actually be different. throwing out the two-year contract would be a damn good start.

Highest Ranked

derX @ Mar 1st 2008 5:49AM

Their death is inevitable.

These MVNOs decide to go into business because they have some trendy idea that's "sure to be a success." But they aren't. In fact, they never are. It's like any other trend: ephermeral.

What's worse, it never gained any real importance: who do you know with a Helio device?

Neutral

ken @ Mar 1st 2008 9:17AM

Anyone up here bitching about Helio's service never used Helio. I switch from ATT to Helio after 5 years found their service is great, I even got signals up in the hills where ATT didn't have any. Their customer service was really fast and nice on the phone, 100 times better than ATT's. Sure I am taking a risk switch to Helio, I figured if they last 6 months, I already got my money back on the phone I paid and the data I have been using. So maybe I have to get a new number if they ever go out of business, wooopppppieeedoooo....big deal...... I just give out my new number out again, besides I need to get some people off my back anyway. All you people are just bunch of whining babies!

Neutral

Workin Man @ Mar 1st 2008 12:37PM

Not a huge surprise, you have to think that the other large carriers have been building a customer base for over 15 years for some of them, to think that a new provider can come start up and be able to compete against a solid foundation is very naive. Sure some of the heavy data users LOVE Helio, but to get a significant number to change over, especially in limited markets, is a tough task to say the least.

Neutral

J Dizzle @ Mar 1st 2008 3:09PM

This proves the point that you can't stay in business when you offer a $50 unlimited everything plan...keep dreamin' y'all~

Highly Ranked

FyreStarrter @ Mar 5th 2008 2:49AM

Seriously I MISS my ocean & I miss Helio!! This breaks my heart to see their losses so high. They really are a great company, their phones rock, & their data services are second to NONE. & until everyone ELSE started coming out with their unlimited plans Helio was the only one rocking the unlimited for under $100. I had to switch over to sprint when it became to crazy trying to carry a work phone & a fun phone. sniff sniff, I hope they can pull out. Everyone that approached me when I had my ocean wanted one ASAP & at least 60% bought one just from my word of mouth!!! sniff sniff.....

Neutral

mikeyinSF @ Mar 10th 2008 5:54PM

I hope Helio doesn't go away! I just got my Ocean a few months ago after deciding it was better than the sidekick. There aren't many places that sell these phones and that is why I love mine even more... no one has it! I bought it at www.finawireless.com and have never looked back.

Neutral

Jazzi @ Mar 19th 2008 9:34PM

Helio is having issues in the customer service department. When that happens you are sure to have other problems. I was told I could transfer a tel# from my other service. I was told that the other service had to be cancel and call them when this took place. I called them twice just to make sure. So I cancelled -I took the it from the cancellation fee. I called and was told, the rep made a mistake and the number can not be moved now that the service was ended. They needed the service on and could I call the service provider and have them cut the phone back on - Yaeh right! I had that number for 9 years! Now I am scrambling calling my personal and business contacts to alert them. I am livid with Helio!